The Impact of Digitization on Banking and Financial Services Industry in India

The world’s economy has grown and prospered in this age of electronic money. Digital component is increasing in our lives. Historically, the Internet has spread at a phenomenal pace than earlier generations of communications technology, from 1990 through 2000, the estimated number of Internet users grew manifold, impacting how people interact with one another, learn, do business, acquire information, and interact culturally. The digital economy is the latest manifesto to convert and reshape India into a digitally entitled society and knowledge economy by using the strength of digital tools, hardware and mechanism. Digitization automates the product and process, as a result of which both quality and production increase. Digitization mechanizes both product and process, through which standard and productivity increase. The emergence of digital technologies affects mostly Information Technology-concentrated sectors like economic and investment service sectors consisting of a “combination of technologies, information, computing, communication, and connectivity”. Digitization has acted as a catalyst in various areas, including automobiles, travel and tourism, railway, real estate, and mortgage banking industries, for growth across the Indian economy. This paper discusses the role of digitization in the banking sector and how the quality of service can be improved in the banking and financial sectors in India